Joint UNDP/World BankEnergy Sector Management Assistance Program

Activity Completion Report

No. 092/88

Country: UGANDA

Activity: POWER SYSTEM EFFICIENCY STUDY

DE6EM4ER 1.988

Energy Efficiency and Strategy UnitIndustry and Energy Department

Report of the lomt UNDPA/Urd Bank Ener Sector Management Assistance ProgramThis document has a restricted distribution. Its contents may not be disclosed withoutauthorization from the Government, the UNDP or the World Bank.

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EMEGcY SECTOR MANACEMENT ASSISTANCE PROGRAM

PURPOSE

The J-int UNDP/World Batxk Energy Sector Management AssistanceProgram (ESMAP) was started in 1983 as a companion to the EnergyAssessment Program, established in 1980. The Assessment Program wasdesigned to identify and analyze the most serious energy problems indeveloping countries. ESMAP was designed aFs a pre-investment facility,partly to assist in implementing the act ons recommended in theAssessments. Today ESMAP carries out pre-investment activities in45 countries and provides institutional and policy advice to developingcountry decision-makers. The Program aims to supplement, advance, andstrengthen the impact of bilateral and multilateral resources alreadyavailable for technical assistance in the energy sector. The reportsproduced under the ESMAP Program provide governments, donors, andpotential investors with information needed to speed up project prepar-ation and implementation. ESMAP activi.ies fall into two majorgroupings:

- Energy Efficiency and Strategy, addressing the institutional,financial, and policy issues of the energy sector, includingdesign of sector strategies, improving energy end-use, defininginvestment programs, and strengthening sector enterprises; and

- Household, Rural, and Renewable Energy, addressing the tech-nical, economic, financial, institutitnal and policy issuesaffecting energy supply and demand, including energy fromtraditional and modern sources for use by rural and urbanhouseholds and rural industries.

FUNDING

The Program is a major internatiozAal effort supported by theUNDP, the World Bank, and bilateral agencies in a number of countriesincluding the Netherlands, Canada, Switzerland, Norway, Sweden, Italy,Australia, Denmark, France, Finland, the United Kingdom, Ireland, Japan,New Zealand, Iceland, and the USA.

INQUIRIES

For further information on the Program or to obtain copies ofthe completed ESMAP reports listed at the end of this document, contact:

Division for Global and OR Energy Strategy, ManagementInterregional Projects and Assessment Division

United Nations Development Industry and Energy DepartmentProgramme World Bank

One United Nations Plaza 1818 H Street, N.W.New York, N.Y. 10017 Washington, D.C. 20433

UGANDA

POlla SYSTEM WEFICIINCY STUDY

DECEMBER 1988

Energy Efficiency and Strategy UnitIndustry and Energy DepartmentWorld Bank

UGANDA

POWER SYSTEM EFFICIENCY STUDY

Foreword

A mission consisting of Messrs. W. Hay and H. Kron (consultantpower engineers) visited Uganda in September 1986 to conduct a powersystem efficiency audit of the Uganda Electricity Board (UEB). Thisstudy originally was intended to focus on the distribution system onlywith the specific tasks of:

(a) analyzing the level and location of distribution system losses,as well as reliability levels and work procedures and preparingterms of reference for system improvements;

(b) evaluating distribution system planning for the Kampala areaand preparing terms of reference for detailed distributionstudies; and

(c) assisting in the preparation of a temporary 132 kV/33 kVsubstation.

While in the field, however, it became clear to the missionthat the most important issue that needed to be addressed was theeffectiveness of overall organization and operational procedures totackle the large-scale technical and financial rehabilitation of thepower system and the problem of low productivity of existing staff. Itwas felt that unless a plan were developed to deal with these problems,piecemeal changes in the distribution area or other areas of URB'soperations would not be effective.

The present report focuses mainly on the problem of managementeffectiveness and contains terms of reference for technical assistance tohelp UEB develop a management improvement plan. Also, the mission citesa number of deficiencies in the system which cause high losses and recom-menda that UEB collect the necessary data and analyze distribution systemlosses as part of the recommended distribution system planning study.The mission was not able to assist in the preparation of a temporary132 kV/33 kV substation because the step-down trdnsformer which was tohave been used had been installed elsewhere and no replacement unit wasavailable. Thus, the main focus of this report in the distribution areais an analysis of deficiencies in equipment and operational proceduresand the preparation of terms of reference for a distribution systemplanning study.

In the interval between the mission's visit and the issuance ofthis report a number of important institutional and operational changeshave been effected in UEB. In addition, several studies addressing thevarious problems have been completed and are being implemented, (e.g. thereport on management and training by British Electricity International).It is the opinion of UEB's management that full implementation of therecommendations of the various studies will rectify the problemsaddressed in this report. The report presents the situation as it was atthe time of the mission's visit and dees not reflect any changes whichhave taken place in the two years which have since elapsed.

Exchange Rate

(September 1986)

Official exchange Rate Shadow Exchange Rate

1600 Ugandan Shillings u US$ 1 8000 Ugandan Shillings - US$1

1 Ugandan Shilling UR$0.000625 1 Ugandan Shilling 3 US$0.000125

Energy Measures

CWh Gigawatt hourkV kilovoltkVA kilovolt amperekVAh kilovolt ampere hourMS MegawattMHh Megawatt hourV Volt

Acronym. and Abbreviations

ACSR Aluminium conductor, steel reinforcedCDC Commonwealth Development CorporationIDA International Development AssociationODA British Overseas Developmenmt AgencyPILC Paper Insulated Lead CoveredPVC Polyvinyl chlorideUEB Uganda Electricity BoardUNDP United Nations Development Program

TABLI OF CONTNTpag

FOREWORD *cecoec.......eec ............................... i

Recent Performance and Organizational Concerns ......6 1Lo sues ................*,..e.........@.............. c ......... 2

Generation..... ......... ........... ,0 3Transmission/Distribution............................. 4Efficiency Improvement 8trategy....................... 5

II. RECENT PERFORMANCE AND ORGANIZATIONAL CONCERNS ............ 8Problems Inhibiting Efficient Operation............... 8Institutional Structure. .................... .......... 9Personnel ........................................................ 11Training ... ......... ......................................... 12Finances ................................................. 13Management Information Systemso.......... ..... eo.c.... 14Company Transport ........................... i..... 14

III. POWER SYSTEM LOSSES ....................................... 16

Von-Technical Losses ..................................... 16Technicalos ........................................... 19

Installed Capacity..... ................. 00....... 21Staffing ....... ............................... cc............. 21Operating Problems at OvenFalls...................... 21Other Generation ..................................... 22Generation Expansion Planning......................... 23

V. TRANSMISSION AND DISTRIBUTION............................. 26Overview .......... c..e..e .c.....c. .00.e.S.e ....e.......... 26Existing System Description............................. 27Operating Problems and Deficiencies ....cc....c.....cc.. 28Transmission ............................................... 28Sub-transmission ..................... ........... ae. 2811 kV Substations and Primary Distribution System..... 30Distribution Transformers and Low Voltage System...... 33Assistance from the British Overseas DevelopmentAgency ( ODA) ......... 35Additional Equipment Proposed by Kennedy and Donkin... 35

Recommendations .. c.......c..ee.c...e.c......c.....e..c. 36

TABLES

1.1 Proposed Strategy for Efficiency Improvement of theElectric Power Subsector.............................. 5

3.1 Losses in the UES System, 1980 to 1985.................... 164.1 Isolated Diesel Installations............................. 224.2 UEB Load Forecast (1985 to 2000).......................... 235.1 Average Number of Customers Connected to Transformers..... 275.2 Average Load Loss Per Month by Type of Outage (1982-86)... 305.3 Average Load Loss Per Month by Type of Outage (1982-86)... 325.4 Causes of Distribution Transformer Failures*.*.***.*..... 345.5 Analysis of Low Voltage System Outages .................... 355.6 Recommendations for Improved Distribution System

Reliability ............................................... 385.7 Proposed Short-Term Improvements to the Transmission/so***

Distribution Syst................................. ....... 40

FIGURES

1. Uganda Electricity Board Organizational Structure......... 102. Kampala Area Transmission and Subtransmission System...... 25

1. Terms of Reference for Assistance to the Government of....Uganda in Developing a Management Improvement Program.....for the Uganda Electricity Boardt.......................... 42

2. ODA Emergency Materials........................ .. 453. Terms of Reference for System Planning Study.............. 47

MAP

IBRD 16933R1 - Uganda Power System

I SUMMARY

Recent Performance and Organizational Concerns

1.1 The Uganda Electricity Board (UEB) has done an admirable job ofmeeting Uganda's power needs through a very disruptive civil war and thecontinuing economic crisis. But UEB still is facing serious financialand technical problems which inhibit the organization from generating anddistributing electricity at least cost. These include: (a) physicaldeterioration of the power system due to a lack of foreign exchange forreplacement equipment and inadequate preventive maintenance; (b) lossesamounting to about 40% of net generation, mainly non-technical lossesresulting from the lack of an effective system for billing electricityconsumption and collecting revenues; (c) numerous outages which havediminished system reliability significantly; and (d) a low level of staffmotivation and productivity which underly the inefficiency in currentoperations and threaten the success of any operational improvements.

1.2 Inadequate financial resources resulting primarily fromunrealistically low tariffs and the continuing disruptive effects ofyears of civil war have prevented UEB's management from dealingeffectively with the root causes of inefficiency such as reducing theexcessively large staff and improving staff productivity. Given thescale and variety of problems faced by UEB and the enormousrehabilitation/planning work required, there is an acute need for trainedline managers to supervise this work as soon as possible. UEB also needsto reduce the number of its employees, provide adequate training forthose who remain in service and develop reliable consumer data base andmanagement information systems.

1.3 Several studies underway or recently completed are designed toimprove UEB's operations. These studies cover organizational structure,training, billing procedures, revenue collection, stores systems etc.The resulting reports will recommend changes in the structure andeffectiveness of URB's management to produce improvements in the specificareas covered by the studies.

1.4 Chapter II of this report gives an overview of problems whichare hindering UEB's performance and stresses the need for improvements inthe organizational structure and administrative procedures to increaseUEB's efficiency. Concerning the future organization of UEB, the reportrecommends that the Government of Uganda assisted by a team ofspecialists, prepare a project for establishing a structure and relatedoperating procedures which would exercise UEB's autonomy to make thenecessary changes for reducing costs, improve staff productivity,increase revenues and rewtrd productive workers with adequate salaries sothat they are not forced to seek employment elsewhere on UEB time inorder to feed their families.

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1.5 Since virtually every aspect of UE8's operations requiresrevamping, it is extremely important to develop a skilled management teamto implement those changes recommended by the various ongoing and plannedstudies which will be accepted by UEB's Board of Directors and thereafterto maintain operations at an increased level of efficiency. It is recom-mended, therefore, that the Government of Uganda contract with externalspecialists to fill line-management positions for a period of three tofour years, during which time UEB counterpart staff would be selected andtrained to assume these positions at the end of the contracted managementperiod. Annex 1 provides Terms of Reference for a small team of expertsto assist the Government of Uganda and UEB in preparing a managementimprovement plan for the transition period and evaluating proposals fromqualified candidates to implement the plan. The cost of this projectpreparation work is estimated at US$75,000.

1.6 Regarding training, it is recommended that, in addition torenovating the Owen Falls training center, UEB endeavor to providetraining opportunities closer to Headquarters. Considering that thereorganization and rehabilitation of the UEB system will require asuostantial amount of training, it wouLd be more useful to have trainingfacilities closer to Headquarters so that they may be used for courses ofa day or less and not only for residential courses of extended duration.

1.7 Chapters III and IV of the report deal with specific areas ofUEB's system --technical and non-technical losses, and rehabilitationneeds as well as operational deficiencies in the generation andtransmission of electrici.y. The findings and recommendations in theseareas are outlined below.

Losses

1.8 UEB's high system lossea are believed to be meinly non-technical in nature, resulting from unauthorized connections, unmeteredsupplies, poor meter servicing, and inadequate billing procedures.Ongoing studies in organization, training and billing system operationsshould lead to improved procedures which, after they are implemented overa few years should reduce losses substantially. However, in the mean-time, UEB must begin a number of activities on its own to improve itsefficiency and try to lessen its financial losses. These activitieswould consist of:

(a) establishing a program of house-to-house inspections todetermine the status of consumers connected to the system andaccount for the energy sent out;

(b) introducing a minimum monthly bill to be paid regardless ofconsumption. This would offset the fixed costs to UEBassociated with each consumer and would help detect inactiveaccounts. These accounts can then be disconnected, ifnecessary, and removed from the billing register;

(c) collecting a monthly flat-rate charge on unmetered connections;

(d) implementing a program of meter sealing throughout the country,beginning with the larger consumers and more densely populatedareas;

(e) replacing or recalibrating old meters. 1/

1.9 The mission was unable to make a reliable estimate of technicallosses in UEB's distribution network but did note several indicators ofsignificant losses. For example, many feeders are being loaded abovetheir design capacities and this practice results .n unsatisfactoryvoltage levels for the consumers as well as the frequent burning ofjumpers, joints, and sometimes even the feeders themselves. Moreover,the power and distribution transformer capacity clearly is inadequate tothe load supplied, resulting in losses above normal levels. Thedistribution network's design includes very long secondary lines suppliedby a small number of large transformers which probably result in lossesthat are greater than would be the case with shorter, low-voltage linescombined with a large number of transformers with a lower average rating.

1.10 The study of distribution system planning, recommended inpara. 5.5, should quantify losses on the exieting system and developdesigns for improvements taking into account the need to reduce lossesand improve the reliability of supply. The estimated cost of this studyis US$246,000 and Terms of Reference are found in Annex 3.

1.11 Reduction of losses will improve UEB's finances and make moreenergy available for export. These sales are paid for in foreign exchangewhich is of economic benefit to Uganda. In addition, if losses are re-duced the need to invest in new generating facilities will be postponed.

Generation

1.12 Rehabilitation work is underway to restore generating unitswhich are out of service at the Owen Falls Station (150 MW). As part ofthis rehabilitation process, the alternators of the units will bereinsulated and the maximum output of the station will increase from150 MS to 180 MW.

1.13 Outside the main electricity grid, the availability of isolateddiesel units is significantly below maximum demand in their regions ofoperation due to a lack of spare parts and preventive maintenance.Although generation from these units amounts to only 12 of the nationaltotal, their immediate restoration nevertheless is crucial because theyare the main source of power to the isolated communities they serve.

1/ Recommendations in subparagraphs (a), (c), (d) and (e) were beingimplemented in 1988.

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UEB's plans are eventually to extend the rural electrification servicesfrom the grid to eliminate these diesel stations, but until such time isproceeding to restore the diesel plants to full working order andimplement an effective preventive mintenance program.

1.14 Uganda's draft power system development plan indicates that by1992 the fihm capacity of the Owen Falls Station will be insufficient tomeet projected demand (162 MW including exports). The plan recommendebuilding a new hydro plant (180 MW) at Bujagali, downstream from OwenFalls station, as the next step in power system development.

1.15 Although a new hydro site will have to be developed sometime inthe next 10 to 15 years, the mission believes that it may be possible todefer the investment in new facilities through an increase in ge-neratingcapacity at the Owen Falls site, supplemented, if necessary, with thermalback-up capacity in the case of insufficient water flows. The missionstrongly recommends that UBB evaluate this option within the context ofits least-cost development plan before proceeding with the engineering ofthe Bujagali project.

Transmission/Distribution

1.16 Through a grant from the British Overseas Development AgencyCODA), Uganda is receiving some of the equipment required to rehabilitateits distributiou system at a cost of US$1.6 million. 2/ Kennedy andDonkin have prepared a report on the rehabilitation and uprating of theUEB systems. This report indicates additional equipment needed toimprove the reliability of supply (para. 5.37). UEB and the mission havereviewed their proposal and agree that some of these recommendedimprovements should be postponed until the completion of a detailedsystem planning study for the Kampala area which evaluates rehabilitationalternatives and establishes a clear direction for future systemdevelopment (para. 5.39). It was also agreed that :ertain improvementsintegral to adequate system operations should be made immediately withoutawaiting the outcome of the planning study. These improvements arelisted in Table 5.7.

1.17 It is recommended that UEB contract specialist services toundertake the system planning study and to train UEB's engineering staffin applying computerized system planning techniques. The cost of the

2/ A list of this equipment is attached as Annex 2.

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study is estimrted at US$246,000 and its Terms of Reference are attachedas Annex 3.

Efficiency Improvement Strategy

1.18 Table 1.1 presents a summary of the proposed strategy for UEBefficiency improvements.

Table 1.1: PROPOSED STRATEGY FOR EFFICIENCY IMPROVEMENT OF THE ELECTRIC POWER SUBSECTOR

Issues Objectives Recommendations Studies Priority

A. Institutional

(a) Employee prompter response to Increase basic compensa- Firstproductivity, consumer requirements; tion and trim staff(para 2.15) lower total wages and numbers; introduce

salary costs; Improved incentive awards schemestaff morale, based on performance

indices, (para 2.18);introduce management andsit l Is training programs(para 2.23)

(b) Shortage of skills More efficient Provide training Organization and Thirdnecessary for discharge of utility s facilities closer to Training Studyefficient utility responsibilities; less employee centers, (para (British Electicityoperation dependence on external 2.23); develop International 1987);(para 2.22). expertise. appropriate training Proposed Management

programs for selected Improvement Studyemployees (para 1.6). (Annex 1).

(c) M4anagement Provision of Assign responsibilities - SecondInformation technical, financial for managementSystems (para and other data to information systems,2.25) assist informed, preferably computerized

prompt and effective (para 2.25)decision-making.

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Issues Objectives Recommendations Studies Priority

B. Losses

(a) Sum of technical Reduce losses, Commission study to Distribution planning Firstand non-technical increase revenues, determine extent of study to quantifylosses exceed 40 defer Investments, technical and non- technical lossespercent of energy technical losses respec- (Annex 3).sent out over UE8 tively (para 1.10,system (para 3.3). k.17,5.5). See also

r ommendatIons (b) to(g) below.

(b) Unauthorized Increase revenue House to house Inspection - Firstconsumers connect collections. Reduce to locate and disconnectdirectly to the uneconomic Increases unauthorized supplies,grid; revenue not In demand. Prosecute offenderscollected and (paras 1.8(a),3.5, 3.7).demand Increased.

(c) Many accounts on Improve etficlency of Introduce minimum bill - Firstbilling register billing process, and remove inactiveInactive (pars accounts from billing3.12). register (para 1.8(b),

3.12).

(d) Meters register Correct recording of Meter inspection and - SecondInaccurately energy consumed to sealing program. Replacebecause of defects Increase revenue older or defectiveor tampering. inflows. meters. Seal all afterRevenue lost (para inspection or replacement3.11). (para 3.11).

(e) Irregular billing Increase revenue Avoid unmetered supplies. - Secondof ummetered collections. If such are necessary,consumers with ensure that the consumersauthorized direct receive monthly estimatedconnections (para bill (para 1.8.Cc)).3.9).

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Issues Objectives Recommendations Studies Priority

(f) High level of Improve quality of Commission study to Economic Loss Reduc- Thirdtechnical losses service. Reduce determine economic tion program as partdue to: losses. technical loss reduction of distribution plan-- overloaded program (para 3.17, para ning study (Annex 3).

transformers 5.38 and Annex 3).(para 3.15);

- Inappropriateconductormaterial (para3.16, 5.31);

- long secondarylines (pare3.17, 5.34).

C. Generation

(a) Least cost genera- Maximize generation at Re-evaluate potential of Review of hydrology of Secondtion expansion Owens Falls site. Owan Falls for expansion Lake Victoria (parastrategy (para (para 4.13). 4.13).4.13).

(b) Security of supply Acceptable quality of Rehabilitate diesel units - Thirdto isolated sys- service to all serving isolated systemstems (para 4.8). consumers. (para 1.13).

D. Transmission and Distribution

(a) Operating Reliable power supply Improve operating and Distribution planning Firstcondition of T and to consumers. maintenance procedures study to determineD system (para (para 5.38, Table 5.6); rehabilitation needs1.1, 5.3, 5.22- purchase new equipment and revise engineering5.25, 5.29-5.30). (para 5.42, Table 5.7), standards (para 5.39,

Annex 3).

(b) Firm transmission High supply Investigate feasibility Conduct detailed Secondcapacity supplying reliability to the of upgrading 66 kV Owen feasibility studyKampala (para major load center. Falls to Lugogo line to (para 5.41).5.14). 132 kV (para 5.39, 5.41).

(c) Many TID system Reliability and Rebalance loads (para Firstcomponents over- quality of supply. 5.16), reallocate feederloaded (para 5,15, loads (Table 5.6, items 55.21,5.23,5.31). and 11).

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II. RECENT PERFORMANC AND ORGANIZATIONAL CONCERNS

Problems Inhibiting Efficient Operation

2.1 The management of the Uganda Electricity Board (UEB) hasserious financial and technical problems which severely inhibit itsoperating efficiency, making it difficult to deliver electricity tocustomers at least cost.

2.2 The main financial problem is the lack of sufficient foreignexchange as well as domestic currency to invest in technical improvementsto the power system, which has been badly damaged by civil war and a lackpreventive maintenance. This scarcity of foreign exchange is pervasivein all sectors of Uganda's economy and its availability to the U8Bdepends on priorities established by the Government. The lack ofdomestic currency results from poor internal cash generation caused by aninefficient billing system, defective metering, electricity theft, andinadequate collection on electricity billed.

2.3 UEB bills only about 60Z of the net electricity it generatesfor internal distribution. The other 40% is lost due to (a) problems inmetering and billing, resulting in financial losses since electricity isbeing used by consumers but not accounted for in UEB's commercial recordsand (b) technical characteristics of the transmission and distributionsystem, such as overloaded transformers and inappropriate conductormaterial and sizing, leading to economic losses since resources used togenerate electricity are not being used by consumers.

2.4 A significant source of losses is the unauthorized connectionto the grid of consumers who circumvent the billing system. Many ofthese consumers have had long-standing applications for service whichhave not been processed as yet due to UEB's lack of funds for therequisite materials. Such connections not only cause losses but aredangerous to the consumer since they do not adhere to safety standards;moreover, they often cause damage to transformers due to improper wiring.

2.5 In addition to losses, the poor financial condition of the UEBis exacerbated by the fact that the company collects only 80X of what itactually bills, at a low tariff rate of US$.015 per kWh. The mission wasnot able to assess UEB's financial situation at all because it did nothave access to recent financial statements.

2.6. On the technical side, the condition and reliability of thepower system have deteriorated extensively. Most of the electricitygenerated by UEB comes from the Owen Falls hydropower station, which isoperating at a maximum of only 701 of its rated capacity of 150 MW. Thedistribution system has experienced numerous voltage problems, highlosses, thermal overloads and outages. Many areas of Kampala, thecapital, have been without power for months because of transformerfailures and a lack of spare parts.

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2.7 The main obstacles to resolving these financial and technicalproblems are the low productivity of UES employees and the lack ofeffective management systems to motivate employees, improve finances,procure equipment required and establish operating and maintenanceprocedures geared to supplying efficient, reliable electricity service.

2.8 UEB's staff is large in proportion to the number of consumersit serves; there is one employee for every 34 customers compared to aratio of between 120 and 160 in more efficient utilities of comparablesize. The low productivity of UEB employees is due primarily to a verypoor salary and incentive structure whereby many employees receive amonthly wage which is just enough to adequately feed a family of four fora few days.

2.9 Furthermore, there are several serious deficiencies inmanagement structure and operations which pose signifitant obstacles torestoring financial viability and improving the quality of electricityservice. First of all, the management does not appear to have sufficientauthority to make the structural changes required to deal with the lowproductivity problem, such as reducing the size of the staff, raising thesalary of those who remain and se-ting up a performance monitoringsystem. Secondly, there is no single person responsible for thetechnical administration of UEB. Moreover, there is no reliable customerdata base to help control the unauthorized use of electricity.

Institutional Structure

2.10 The Uganda Electricity Board (UEB) came into existence inJanuary 1948 shortly after a decision to construct the Owen Falls hydro-electric project for providing power. to Uganda on a large-scale. A Boardof Directors, appointed by the Minister of Energy, oversees UEB'sperformance, and establishes the policy guidelines under which it oughtto operate. The Board consists of not less than five members and no morethan nine. The Chairman is also the Managing Director and ChiefExecutive of the organization. 3/

2.11 UEB's organization at the time of the mission's visit is shownin Figure 1. Its administration is centralized in Kampala, where allofficers reporting directly to the Deputy Managing Director are locatedexcept for the Chief Generation Engineer, whose office is in the OwenFalls generating station, For consumer services, the country is dividedinto four regions (East, North, Central and West), and further subdividedinto 26 districts. Each region should be headed by a Regional Manager,but at present these positions in the eastern and northern regions arevacant. Each district is administered by a district manager.

3/ This section on institutional structure and Figure 1 represent UEB'sorganizational structure at the time of the mission's visit. Theyare no longer accurate and UBB was restructured in 1987.

Fig. 1: UGANDA ELECTRICITY BOARD ORGANIZATIONAL STRUCTURE

I CHAtRMAN ANDMANAGING DIRECTOR

DEPUTYMANAGING DIRECTOR

CHIEFCHIEF CHIEF CONSTRUC- CHIEF CHGENERATION ELECTRICAL TION COMMERCIAL CH ENGINEER ENGINEER MAINTENANCE ENGINEER ACCOUNTANT TRNPT SEUIYTASTC SCEAY DSRCS ENGINEER

*Electrical ODistribution * Construction * Commercial *Internal *LegalMaintenance Maintenance Operations Audit AffairsMchanicl * System * MaintenanceMehalnicnan oSysterin (Transmission *Wages *Personneldalntenance Oprtos Substations)

*PowerStation *Cornmunications *Data Processing *Housdng and0 po"r Stadon Vftl~~~~~~~~~~~~~~~~~~~~~~~~~~fareOperations *Planning *Purchadng TrareDiesel Units *Revenue Trbin

*Public*Accounting Relations

*Stores

World iank-31 t85:2

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2.12 UEB's organizational structure has several major deficiencieswhich inhibit efficient operation. First, the management does not inpractice exercise authority to make structural changes to improveoperational efficiency. For example, tackling the problem of 1--productivity may involve reducing the size of UEB's staff, raising tnsalary of those who remain and setting up a system to monitor employeeperformance. Although UEB's charter grants sufficient flexibility tomake these changes, in practice it would be difficult to implement thembecause UEB apparently adheres to civil service restrictions. Secondly,UEB lacks an adequate customer data base for its management to controlnon-technical losses. Thirdly, the position of "Chief Engineer", whichexisted some time ago, has not been filled recently and is no longershown on the organization chart. It is absolutely essential for anelectric utility the size of UEB to have someone with overallresponsibility for managing technical affairs, including the planning ofsystem expansion. Finally, there are at least nine other positionsreporting directly to the Deputy Managing Director, and it would beimpractical for this number to be increased to include regional and/ordistrict managers as well.

Personnel

2.13 The present number of UEB employees is approximately 2,800, ofwhich about 300 are temporary. Temporary employees are paid on the basisof a daily rate which corresponds to the national minimum wage. Thelowest paid permanent employees are paid by the month at a rate which isnot substantially higher than the minimum wage. Of the 2,500 permanentemployees, about 1,600 are paid at or about the minimum wage, and cantherefore be regarded as unskilled labor. The number with tertiaryeducation is estimated at 160. UEB's practice is not to recruit skilledpersons with prior experience believing that the nature of electricutility business is such that experience gained externally will not be ofsignificant advantage to the utility.

2.14 The staff is unionized up to the level which reports to depart-ment heads. There are two bargaining units, the "UEB and Allied Workers'Union", which represents employees below the supervisory level, and the"Permanent Senior Staff Association", which represents unionized staff ator above the level of supervisor.

2.15 UEB's staff is large in relation to its number of consumers orthe size and complexity of the system. The number of employees reflectslow average productivity in nearly all areas of operation. The primarycause of low productivity is the low salary structure at all levels ofUEB staff. This is exacerbated by the lack of essential resources forefficient operation (transport vehicles, tools, etc.) due to UEB'sfinancial constraints. The problem is not confined to U8B, but is fairlytypical of all public sector employees. Effective October 1986, allpublic sector employees were given an increase in salary which rangesfrom 50X for those on the minimum wage through a range of gradations to30X for the most highly paid. On this new scale, the minimum wage now

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becomes 10,000 Uganda shi'.lings per month or about US$7.15 per month atthe official rate of exchange, or US$1.25 per month at the so-called"open market" rate.

2.16 The purchasing power of the employees at such salaries isminimal. For example, a bunch of matoke, (a type of banana which is astaple item in the Uganda diet), costs about 12,000 shillings and willfeed a family of four for an average of three days. A kilogram of meataverages 7,000 shillings, a live, average-sized chicken 15,000 shillings.Thus, the sheer pressures of existence force the UEB employees to seekmeans of augmenting their income. Some, reportedly, assist consumers incircumventing UEB's billing system.

2.17 Furthermore, employees who live beyond walking distance fromtheir place of work cannot afford to take public transportation and UEBuses operational vehicles to transport employees. The limited number ofvehicles, the large number of employees to be transported and thedistances involved make it impossible to adhere to any schedule ofpunctual reporting to the workplace and the process is repeated at theclose of the working day. Although the official working hours are7:30 a.m. to 4:30 p.m., many field employees seldom report to work before9:30 a.m. or remain past 3:30 p.m., and some engage in non-UEB activiti2sduring that period.

2.18 The problem of productivity is the most fundamental one facedby UEB and any increase in resources will not have lasting benefitsunless employees can be motivated to spend more hours in the Board'sservice asid to produce more per hour. A solution to the problem is verydifficult, especially as low wages and productivity are not confined toUEB alone. A recommended approach is the introduction of incentivepayments which will be made to all employees on the basis of indices ofperformance which are objective and easily quantified, (e.g. losses,accounts receivable, meters read per month, etc.). However, even with asignificant increase in salaries at all levels, the productivity problemwill not be solved completely. The employees must also be convinced thatthe Board's welfare is in their personal interest and the managerialsystems muss be in place to ensure punctuality and efficiency at theworkplace.

Training

2.19 All recruits for skilled positions in UEB require some relatedformal academic training before employment. They are regarded astrainees for the first two years on the staff.

2.20 Craftsmen, such as linesmen and mechanics, are required toattain the "0" Level standard in high school and to have completed a two-year course at a technical institute. After being hired, they are placed

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in a position for a two-year training period. Craftsmen are not normallygiven experience in other positions during training. 4/

2.21 On initial employment, professional recruits are also placed ina two-year training program. However, they are given assignments indifferent areas of the Board's activities during this period in order todevelop a broad understanding of the way in which UEB functions. UEBencourages professional development by assistance in further education,such as the diploma course in business management conducted locally, andby overseas post-graduate courses and practical training. The majorityoi overseas training is funded by the British Council, and some by theUnited Nations Development Program (UNDP).

2.22 UEB itself provides no formal training. Facilities fortraining of craftsmen, and, in particular, linesmen; once existed atOwens Falls, but these gradually deteriorated and are no longer beingused. Aere are no suitable lecture rooms or other facilites in Kampala,and therefore tt-ere is no supervisory or management training given.Financial resourcis will not allow the hiring of external facilities forthis purpose. Under the Bank's Second Power Project Loan, US$391,800 inforeign exchange and the equivalent of US$461,400 in local currency havebeen allocated to a manpower and training study and to refurbishing thetraining center at Owen Falls. British Electricity International (BEI)consultanqs have been contracted to do the study which is expected to becompleted in October, 1988.

2.23 The mission recommends provision of training facilities in theKampala area as well as Owen Falls. The distance between Kampala andOwen Falls will make the latter unsuitable for anything but residentialcourses for the majority of UEB employees. If, instead, a center werelocated close to UEB headquarterst it would be possible to presentcourses of one day or less, and such courses could be of great value inhelping UEB develop its supervisory and management personnel, as well inas giving safety and other practical instructions.

Finances

2.24 The mission did not have access to detailed financialinformation on UEB. It is evident, however, that UEB is facing a severefinancial constraint as a result of high losses, low tariffs and high

4/ Some years ago a national program existed by which craftsmen weregraded. Tests were administered by the Ministry of Labor and thegrades awarded as a result of these tests were therefore nationallyrecognized. Since these tests were discontinued, no upgrading ofcraftsmen classifications has taken place. Supervisors mayrecommend individuals for salary upgrading on the basis of merit,but such upgrading does not affect the skills grade and is limitedto not more than four employees annually in any one section.

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accounts receivable. At the time of the mission in September 1986, itsaccounts had not been audited in more than two years. These constraintshave affected UEB's ability to purchase adequate quantities of goods andservices required for efficient operation of the utility. Furtherdifficulties have resulted from a shortage of the foreign exchangerequired for essential purchases overseas. As a result, the utility isexperiencing critical shortages of essential equipment and materials suchas transformers, fuses, meters, service wire, etc., and there are areasof Kampala which have been without power for several months because of alack of the materials required to restore service.

Management Information Systems

2.25 Much of the information required to easily assess UEB'sperformance is not readily available. Statistics on such importantindices as net generation, hourly load demand profiles, losses, sales,collections, feeder loadingi, etc., are not maintained up-to-date. Partof the reason for the lack of information has been unreliability of thecomputer, but not all of these statistics are maintained on the computer.

2.26 The computer is used for consumer billing, accounting, payrolland storep inventory. It was bought new in 1971, but the model wasdiscontinued in 1976. In 1981, the manufacturer informed owners of thatmodel that spares could no longer be guaranteed. The machine has becomeincreasingly unreliable and has severely affected consumer billing inparticular. A new computer is to be purchased under the Bank's SecondPower Project and should be installed in August, 1988.

Company Transport

2.27 UEBS's transport fleet consists almost exclusively of LandRovers and trucks. The fleet once contained about 130 vehicles, but justover 100 of those were lost in recent civil strife. Management andoperational personnel are allowed personal use of Land Rovers assigned tothem and many of these vehicles are used primarily as personaltransport. Company trucks transport employees to and from work. Thereis only one omnibus in the fleet.

2.28 The shortage of transport vehicles contributes to low overallproductivity, by slowing down response to power supply interruptions.Furthermore, crew sizes are larger than is necessary or desirable, andvehicles are very often not ideal for the jobs they are required toperform. The sum of US$1.7 million in foreign exchange was allocated forthe purchase of vehicles under the Second Power Project.

2.29 UEB already is receiving a substantial amount of assistance, inspecific areas, designed to help restore the system's financial andtechnical reliability. This assistance includes: (a) the rehabilitationof the Owen Falls station; and the procurement of distribution equipment(from British ODA); (b) a study on the adequacy of UEB's stores andworkshops; (c) the training of linesmen (ODA); (d) a study of the

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billing/collection systems; (e) an organization and training study; and(f) the engineering v.ork for the system's next hydropower station.However, this assistance now needs to be integrated into an overall planfor recovery that should consider options for improving managementeffectiveness and UEB's productivity. The remaining gap in requiredstudies is a least-cost expansion plan for the UEB's transmission anddistribution systems. Without a viable framework for implementation, apiecemeal approach to reconstruction is bound to be ineffective.

2.30 Whatever the outcome of the ongoing organization and trainingstudy, UEB, as implied by its charter, should not be bound by civilservice restrictions, and the management must make the requiredstructural changes to deliver electricity at least cost and restorefinancial viability. Terms of Reference have been developed forassistance to the Government in developing a program for improving themanagement of UEB and selecting consultants to provide in-house expertisein implementing the program. These Terms of Reference are attached asAnnex 1. The total cost of the assistance is estimated to be aboutUS$75,000.

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III. POWBER SYSTIN LOSSES

overview

3.1 The level of power system losses is measured by the differencebetween net generation and sales. Net generation is defined as theamount of energy sent out from the power stations, and sales as the totalamount of consumption for which the consumers have been billed.

3.2 ,Losses may be divided into two groups, "technical" and "non-technical". The technical losses are those which result from the flow ofcurrent through transmission and distribution lines, power anddistribution transformers, etc. The magnitude of these losses isaffected by system design, including such factors as the size of, andmaterial used for, transmission and distribution lines, the losses oftransformers under no-load and full-load conditions, etc. Non-technicallosses are the difference between energy sent out and sales, after takingaccount of technical losses in the system.

3.3 The annual losses on UEB*s system for the period 1980 to 1985are shown in Table 3.1 below.

Table 3.1: LOSSES IN THE UEB SYSTEN, 1980 TO 1985

1980 1981 1982 1983 1984 1985

Net, Gen. - GMH 631.3 511.1 552.7 548.6 611.4 623.7To Kenya - OWH 288.8 178.5 213.3 217.5 216.1 215.0To Uganda - GWH 342.5 332.6 339.4 331.1 395.3 408.7UES Sales - GWH 239.6 288.1 286.0 251.3 282.8 244.1Losses - GWH 102.9 44.5 53.4 79.8 112.5 164.6Losses a/ - S 30.0 13.4 15.7 24.1 28.5 40,3

a/ Losses are expressed as a percentage of net output to Uganda.

The losses, expressed as a percentage of the net power fed into the UEBsystem have been increasing steadily since 1981 and have now reached veryhigh proportions. Total losses for 1985 were estimated at about 401 ofnet generation. Since technical losses are estimated to be no more than10-15%, these losses are mainly non-technical and appear to beincreasing.

Non-Technical Losses

3.4 Unauthorized Connections. There apparently are large numbersof consumers who have connected themselves illegally to the powersystem. Although many of these intend to defraud UEB, a sizeable number

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have resorted to this action in desperation, as the only means ofobtaining a supply of electricity. UBB is critically short of resources,and many long-standing applications for service have not been grantedbecause the materials required, service wire in particular, are not inthe stores. Usable material is locally available, however, and someapplicants for service purchase sub-standard material themselves andarrange for their own connection to the system. The practice not onlyincreases losses, but also endangers customers because those who arrangefor their own connections do not adhere to UEB's standards, and safetyconsiderations are normally disregarded. It is not unusual fortransformer fuses to be blown or the transformer itself damaged becauseof improper wiring installations on these illegal systems.

3.5 The problem of unauthorized connections has reached such agreat a magnitude that the only action which will be effective is ahouse-by-house inspection of the entire area served by UEB. Theinspections will need to be carefully and conscientiously done, becausesome of the connections are run underground or otherwise arranged so asnot to be obvious to casual inspection. The inspectors must be of thehighest integrity.

3.6 These inspections should begin in the urban areas and thenproceed to the rural communities. In instances where UEB does not havethe material required to provide the connection and feels that it doesnot have the financial resources to make the purchases locally, it wouldbe better for UEB to ask the prospective consumer for a cash contributionin an amount adequate for the purchase of the material, and then have theconnection regularly installed than to run the risk of the consumermaking the purchase and the arrangements for connection by himself.

3.7 An unauthorized connection to the UEB system is illegal and thelaw provides for punishment of those involved in such actions. UEBreports, however, that the law enforcement agencies very seldom takeaction on the cases of illegal connections reported to them, and for thisreason prosecution of illegally connected consumers is not pursued. Ithas been shown in other countries that enforcement of the law iseffective in controlling illegal convections and UEB may benefit bytrying to influence the Government to ensure that prosecution is followedthrough in instances where the evidence is clear.

3.8 There is reason to believe that some of UEB's employees may beinvolved in providing connections to illegal consumers, or in defraudingthe Board of revenue by other means. The work force at large must bemade to know that the Board will not condone such action, and anyemployee who can be proved to have knowingly contributed to loss ofrevenue by the Board ought to be dismissed.

3.9 Unmetered Supplies. Since there are no single-phase metersavailable in the stores UEB has consented to giving some consumersunmetered supply. Under existing regulations, these consumers shouldreceive a monthly flat rate charge, but in practice some of the

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information never reaches the billing department, and so the newconsumers never become officially registered. In addition, the billingprocedure'is such that an estimated bill is never sent on more than twoconsecutive occasions unless the district keeps making specific requests,so that even those directly connected consumers who do become officiallyregistered will not necessarily receive a bill regularly. The house-to-house inspections recommended above also would serve to regularize thoseconsumers who have unauthorized direct connections. UEB also shouldrevise the procedure whereby a limit is placed on the number of estimatedbills which can be issued in consecutive billing periods.

3.10 Metering Service. The rate at which meters are read isinadequate to the aeod for punctual billing. The mission noted manyinstances of meters in urban areas which had not been read for periods inexcess of nine months. The excuse most frequently given for the poorpro4tictivity of meter readers is inadequate transportation resources, butisn urban areas this should be no great disadvantage since the meterreaders will conduct most of their work on foot. The low rate at whichmeters are read is more probably another reflection of the overall lowproductivity in the Ugandan public sector. It may be a problem which UBBis not able to resolve, or even improve significantly, on its own. Apossible approach to improvement may, however, be to offer cash rewardsor other incentives for exceeding a certain relatively high target ofmeters to be read per day. Such a program could be successfullyintroduced only if similar incentives were also offered for increasedproductivity in other areas of UEB's activities. The recommendation hasalready been made (para. 2.18) that indices of performance be developedfor a number of critical areas in UEB's operations and that all staff bepaid an incentive award whenever the target inoices are exceeded. Theamount of the award would be dependent on the extent by which the targetsare exceeded.

3.11 Many of the meters on the UEB system are about 30 years old,and even more are unsealed. Older meters should be replaced or at leastrecalibrated and a meter sealing program init iated. As some of theexisting sealing tools have been lost, it would be advisable to adopt adifferent method of meter sealing than has been employed in the past.The newer meters can probably be safely sealed without recalibration,since meter tampering is evidently not a serious problem in Uganda.

3.12 Billing System. There are grave shortcomings in the billingsystem, even when the computer is operating satisfactorily. Of more than200,000 consumers on UEB's billing register, about 50% are inactive.These inactive accounts provide no revenue but slow down the billingprocess unnecessarily. There are also consumers who are connected to thesystem, but are not on the billing register. This category is notlimited to the illegally-connected consumers, but includes many properlyauthorized connections which, for one reason or another, were neverregistered for billing purposes. The inspections previously recommendedwill help to ensure that all consumers become properly registered forbilling, but will not necessarily be effective in removing inactive

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accounts. To accomplish the latter objective, it is recommended that UBBintroduce: a minimum monthly bill, and that all accounts which haveoutstanding arrears of, sayt three months, be disconnected and removedfrom the billing register.

3.13 The continuous breakdown of the billing system's computer isoften cited as the main reason for the virtual collapse of the billingprocess. Records indicate, however, that the downtime on the computerbetween January 1 and July 31, 1986 was only 33 hours, which suggeststhat jhere are some other reasons for the billing backlog.

Technical Losses

3.14 Although the primary focus of attention in UEB's loss reductionprogram should be non-technical losses, there is also some scope forreducing technical losses. In the time available it was not possible tomake the calculations necessary to develop an accurate estimate of theextent of technical losses. There nevertheless is sufficient scope forreduction of technical losses, which would not only improve voltageregulation, but would also be justified from purely economicconsiderations.

3.15 The power and distribution transformer capacity in Kampala isclearly inadequate to the load being supplied, and must result in losseswhich are higher than the optimum.

3.16 On many feeders in Kampala, UEB continues to use steelconductors for the distribution of loads amounting to several hundredkVA. There are many upderground and overhead feeders which are beingloaded well above their design capacities and result not only inunsatisfactory vottage levels to the consumers, but also in frequentburning of jumpers and joints, and sometimes of the conductorsthemselves.

3.17 The very long secondary lines, supplied by transformers ofrelatively high kVA ratings, probably result in greater losses than wouldbe experienced with shorter low voltage lines and a large number oftransformers with lower average rating. A study needs to be done ofUEB's distribution system, particularly for the areas in and aroundKampalai (see para. 5.5). As part of the study, the losses on theexisting system ought to be quantified and designs developed formodifications to the existing system as well as to its expansion toaccommodate future loads to optimize reliability of supply as well aslosses.

Conclusions

3.18 Reduction of losses, technical and non-technical, will bringsignificant financial benefits to UEB and economic benefits to Uganda.The revenues now lost because of the non-technical losses would, ifcollected, help to alleviate the financial constraints which now inhibits

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UEB's efficient performance. Reduction of unproductive consumption inUganda, (this includes technical losses), will make more energy availablefor export to Kenya. These exports are paid for promptly, and inconvertible foreign exchange. In addition, suppressing the rate ofincrease of uneconomic demand will postpone the need for investment innew generating facilities. Loss reduction must become an important itemin UEB's action program.

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IV. GRAfTION

Installed Capacity

4.1 The major source of electric power supply in Uganda is the OwenFalls hydroelectric generating station located on the Victoria NileRiver, about five kilometers downstream of the outflow from LakeVictoria. Construction of this station began in 1950 and it firstproduced power in January 1954 with two generating units, each rated at15 MW. The installed capacity of the station was expanded by the furtherinstallation of virtually identical units, ending with the tenth, whichwas commissioned about 1962. The total rated capacity of the station isnow 150 MW.

Staffing

4.2 The Owen Falls generating station employs a total of about 130persons covering administration, shift operations, civil engineering andelectrical and mechanical maintenance. In addition, maintenance stafffor the diesel generating stations are based at Owen Falls, as well assome construction and communications maintenance personnel. The lattertwo groups do not fall within the administrative responsibility of theChief Generation Engineer.

Operating Problems at Owen Falls

4.3 At present, three of the ten units are out of service,primarily for repairs to the alternators. The other seven units arereportedly capable of operating at their rated capacity. Since powerdemand in Uganda is currently less than 100 MW at peak, the remainingunits in service can comfortably satisfy the maximum national demand andalso fulfill the UEB's contractual obligations to provide a minimum of30 KW to the Kenyan power system.

4.4 The output of the alternators has been limited by windingtemperature considerations, as the turbines are capable of generating18 MW under existing water-level conditions. During the rehabilitationprocess, all alternators will be rewound with conductors with a higherlevel of insulation (Class "F") to allow operation of the alternators atthe proven 18 MW capacity of turbines. The alternators then will berated at 23 MVA, instead of the current 16.7 MVA. The maximum output ofthe station then will be increased from 150 to 180 MW.

4.5 Over the years of operation, some cracks have developed in thepowerhouse and the dam. Although they do not immediately endanger thesafety or operational reliability of the installation, the cracks need tobe repaired to prevent further deterioration. UEB's consulting engineershave dev'loped a program of rehabilitation for the dam and the generatingplant, which includes the repair of defects in the civil works andrefurbishing of electro-mechanical equipment.

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Other Generation

4.6 The transmission and distribution system emanating from OwenFalls does not cover the entire country, and there are a number of"island" systems serving certain rural communities. These island systemsobtain power mainly from high-speed diesel generator sets, except for two250 kW hydroelectric units installed near Kabale in the southwest alongwith four diesel units rated between 210 and 250 kW each. There are noother hydroelectric units on the public power system. There is, however,at least one significant private installation of two units rated at2,500 kW each, built to provide power to the copper mining facilities atKilembe in West Uganda, but these units currently are not operating.

4.7 In addition to the isolated system supplying Kabale and itsenvirons, six other isolated networks are powered by diesel generators.The available capacity from these installations, as well as the maximumrecorded demand, are shown in Table 4.1 below.

Table 4.1: ISOLATED DIESEL INSTALLATIONS

No, of Sets Available Maximum RecordedStation Available Output Demand

(kW) (kW)

Arua 3 665 1,200Kapchorwa 1 150 150Kitgum 1 110 SO0loroto 2 375 50DMOyo 1 65 350Rukungiri 1 210 600

4.8 Table 4.1 above indicates that none of the isolated systems iscapable of meeting historical maximum demand. The reasons given by UEBfor the restricted availability of the units include a lack of spareparts and inadequate transportation facilities, thereby resulting in alack of proper maintenance.

4.9 The available records do not allow for accurate calculation ofthe annual energy generated by the diesel units nor for the determinationof the specific fuel consumption of the individual engines. Thepercentage of energy generated from the diesels is, however, less than 1Xof UEB's total annual generation.

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Generation Expansion Planning

4.10 A power system development study has been prepared for UEB bythe consultants, Sir Alexander Gibb and Partners and Kennedy andDonkin. 5/ The forecast for the base case scenario is given inTable 4.2.

Table 4.2: UEB LOAD FORECAST(1985 to 2000)(MW)

1985 1990 1995 2000

Uganda 81 113 156 199Exports 31 31 41 41Total 112 144 197 240

Source: Power Development Study of the UgandaElectricity System, Draft Final Report; SirAlexander Gibb and Partners, Kennedy andDonkin, March, 1986,

4.11 The consultants report considered several new hydro develop-ments and concluded that the least-cost solution to meeting increasedpower demand would be to construct a 180 MW station (in units of 30 MW)at Bujagali, about 7 kilometers downstream of the existing Owe' FallsStation at Bujagali. The estimated cost of the project is 135 millionpounds sterling (1985 value).

4.12 The base case of study finds that by 1992 the capacity of OwenFalls will be *nsufficient to meet Ugandan demand and fulfill contractualobligations for the supply of at least 30 MW to Kenya. Even with a morepessimistic forecast additional capacity will be required in 1994.Generally, the minimum construction period for the first phase of anyhydroelectric development is about four years. Additional time will berequired to secure project financing, prepare the engineering designwork, and negotiate contracts. Thus there is a considerable amount ofurgency to prepare another hydro project.

4.13 Much of the historic increases in consumption on which demandprojections are based result from unauthorized or other unmetered connec-tions to the UEB system. The expected demands may therefore not berealized if UEB were to successfully implement programs to control

5/ Power Development Study of the Uganda Electricity System, DraftFinat Report, Sir Alexander Gibb and Partners, Kennedy and Donkin,March, 1986.

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unmetered cohsumption and reduce accounts receivable. However, if theforecast. aro realistic and new capacity is required in the near future,the economics of increasing the present generating capacity at Owen Fallsneeds to be re-examined as an alternative to a completely new station.The Lake Vidtoria hydrological data is subject to interpretations otherthan those presented in the study currently being used as the basis forexpansion plans. In addition, that study attributes no benefits tosecondary energy available at the Owen Falls site. It does not evaluatethe cost of alternative sources of generation, (e.g. gas turbines,imports from neighbouring countries, etc.), which may be required toprovide the shortfall in capacity which the study suggests would beexperienced if the Owen Falls site were further developed. The missionrecommends that tUEB undertake further evaluation of the Owen Fallsextension option before proceeding with engineering work at Bujagali.

Fig.2: KAMPALA AREA TRANSMISSION AND SUBTRANSMISSION SYSTEM

4ttKV ftK

+ + ~~~~~~KAMPALA NORTH

TO 1KNEr 1 > _ 32KV

TO OWEN FALLS

~~OtH 132KV

TO SOMBO

T - 3~ ~~33KV

n n n~~~~~~~~~~~~~~~~~~~~~~~~~~eed

_ _ T ~~~~~~~~~~~~~~~LINE No.t1

+ LU LnG s-LINE No.2 c{I

_~~~~~~~~~~~a thspon

66AKV _OI

TO OWEN FALLS

11KVl IIKV _<.

atJEENSWAY33KV _ 3

MITYANA TE E\ \ ~~~~~~~~~~~~~~~~~~Legend:

l l ~~~~~~~~~~~~~~~~~(ID Transformner

[ ] [ 3 & lil JF ~~~~~~~~~~~~~~~~~~~Lines not connected

33KV PA-K MP LA SCXUTH

33 KVMASAKA ENTEBBE ENTEBBE World Bank-31tt85:1

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V. TRANSMISSION AND DISTRIBUTION

Overview

5.1 The transmission system consists of 132, 66 and 33 kV linesemanating from Owen Falls Generating station, as shown in the accompany-ing map IBRD 16933R1. The 33 kV sub-transmission system linking the mainKampala substations, Kampala North and Kampala South (see Figure 2.p.25), is limited in capacity and firm supply is no longer available inthe event of a line outage on this system.

5.2 The 33/11 kV substations in the Kampala area, with theexception of the Lugogo Substation, have sufficient firm transformercapacity to meet current loads. One transformer is presently out ofservice at Lugogo and in the event that the remaining unit fails, a long-term outage in the substation's service area would result.

5.3 Numerous voltage problems, high losses, thermal overloads andoutages inhibit the efficient operation of the 11 kV and 400 Vdistribution network in the Kampala area. Due to a lack of replacementtransformers, many areas of Kampala had been without power for severalmonths because of transformer failures.

5.4 The immediate problems caused by a lack of spare parts andequipment will be eased once emergency materials become available througha current ODA grant. Additional electrical equipment, includingsubstation power transformers, 33 and 11 kV switchgear and undergroundand overhead line materials will be required by UEB in order to upgradethe system capacity in the Kampala area to meet short-term needs andfurther improve system reliability. The installed cost of the equipmentincluding foreign and local components is estimated at US$1.5 million.It was proposed to fund this as part of the US$29 million IDA Power IICredit. UEB also can reduce outages substantially by a concerted effortin the areas of preventive maintenance and good operating practices.

5.5 A comprehensive planning study of the Kampala area will berequired to update current system information and define improvement andexpansion programs for the sub-transmission, primary distribution andsecondary distribution systems. This study should cover a 10-year periodof system forecasting and development. Terms of reference for this studyare included in this report under Annex 3. The estimated cost of thestudy including professional services, travel and subsistence andequipment supply is US$246,000.

5.6 Current deficiencies of the Kampala area transmission anddistribution systems and recommendations for short-term and long-termsolutions are outlined below.

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Existing System Description

5.7. The transmission network supplying the Kampala, central andwestern regions consists of two 132 kV circuits and one 66 kV circuit.The 132 kV supply is carried on a double circuit, steel tower line andthe 66 kV supply is carried on a single circuit steel tower line. Undernormal operating conditions, power is transmitted via the 132 kV linesonly and the 66 kV line is utilized as a back-up supply in the event ofan outage on the 132 kV system.

5.8 The Kampala District sub-transmission system consists of 33 kVlines supplying Queensway and Lugogo 33-11 kV substations and is shown onFigure 2, p.25. At the Kampala North Station, there is also a direct132-11 kV transformation to supply 11 kV primary distribution to loads inthe northern part of Kampala District.

5.9 The primary distribution system serving the Kampala District isoperated at 11 kV and can be described as an "ungrounded-delta" system.There is an extensive network of underground 11 kV cables in the downtownarea of Kampala which has been in place for as long as 30 years. Theother areas of Kampala are served by overhead 11 kV wood pole lines, themajority of which are three-phase.

5.10 The low-voltage distribution system consists largely of400/230 V three-phase lines which are installed underground in the down-town area of Kampala and overhead in the surrounding urban area.Distribution transformers consist of single phase units ranging in sizefrom 5 kVA to 25 kVA and three phase units from 50 kVA to 1,250 kVA. Inthe Kampala District, a total of 3,940 kVA consist of single-phase and91,000 kVA of three-phase distribution transformer capacity is installed.The distribution transformers feed relatively long low-voltage lines inthe residential areas. The average number of customers connected todistribution transformers in the residential areas is summarized asfollows:

Table 5.1: AVERAGE NUMBER OF CUSTOMERSCONNECTED TO TRANSFORMERS

Transformer Size Average Number of Customers

5 kVa 10 (in rural Areas)15 kVa 10 (in urban areas)25 kVa 2050 kVa 30100 kVa 50200 kVa 100

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Operating Problems and Deficiencies

Transmission

5.11 The 132 kV and 66 kV transmission lines supplying the Kampalaarea from the Owen Falls Generating Station have sufficient capacity tosupply current power demands under the contingency conditions of a single132 kV circuit outage.

5.12 A load flow study completed in June 1984 by UEB's consultants,Kennedy and Donkin, determined that the firm capacity of the doublecircuit 132 kV line to the Kampala North Substation and the singlecircuit 66 kV line to the Lugogo Substation totals 75 MVA. 6/ This firmcapacity is established based on the loss of a single 132 kV circuit fromOwen Falls to Kampala North. The remaining 132 kV circuit, as stated inthe study, is capable of carrying 60 MVA within acceptable voltage limitsand the 66 kV circuit to Lugogo has a capacity of 15 MVA.

5.13 Peak load readings taken by UEB at the time of the mission'svisit showed that the 132 kV circuits to the Kampala North station arepresently carrying a combined load of 51.2 KVA. Under normal operatingconditions, power is not transmitted to the Kampala load area via the66 kV line to Lugogo Station.

5.14 A more realistic firm capacity of this transmission system,should probably consider the loss of both 132 kV circuits, as bothcircuits share the same towers. Structural failure of a tower or a majorelectrical fault involving both 132 kV circuits would result in a lengthyoutage in the Kampala, central and western regions. Substantial peakload shedding would be required to limit the combined maximum demand inthese areas to 15 MVA, or less than one-third of the present load.

Sub-transmission System

5.15 The Kampala North to Kampala South 33 KV sub-transmissionsystem is presently being operated as a closed loop system. A morepreferable arrangement from the standpoint of reliability and systemprotection would be to operate the system radially with the bus tiebreaker at the Kampala South station normally open. However, the loadson both sides of the bus are not balanced because the two supply lines tothe QueeAsway Substation, as well as the line to the Entebbe Substation,are all on the same side of the 33 kV bus. Their total combined load of20.2 NVA cannot be supplied solely by the single Lugogo to Kampala South33 kV overhead line.

6/ "Rehabilitation and Uprating of the Uganda Electricity System,Volume 3--Transmission Distribution and Communications."

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5.16 The thermal capacity of this 33 kV line (125 mm2 ACSR) 7/ islimited to 16 NVA. The bus load imbalance necessitates supplying theKampala South substation with the two 33kV circuits from Kampala Northand Lugogo operated in parallel, which substantially increases faultlevels at the Kampala South bus. In the event of a fault occurring oneither of the supply lines to the Kampala South bus, both supply lineswould have to be taken out of service to clear the fault. To avoid this,there should be a more equitable load balance on the Kampala South bussection, allowing each section of the bus to be adequately supplied byone of the 33 kV lines.

5.17 Upon completion of load balancing on the Kampala South 33 kVbus sections, the sub-transmission system interconnecting Kampala Northand Kampala South Stations would have adequate capacity to meet presentloads. In the event of a single 33 kV line outage, however, insufficientfirm capacity is available. The total peak load on the Kampala South 33kV bus is currently 21.6 MVA. Each 33 kV line has a capacity of only 16NVA. Therefore, in the event of a single 33 kV line outage, substantialload shedding would be necessary in the Kampala load area to reduce the33 kV bus load. It is anticipated that voltages below normal operatinglimits also would occur on the Kampala South 33 kV bus under these singlecontingency outage conditions.

5.18 The two 33 kV overhead lines supplying Queensway Substationfrom Kampala South station have sufficient capacity together to carry the15.6 MVA Queensway peak load under normal operating conditions. However,the capacity of each line is limited to 10 MVA. Thus, firm capacity isnot available to supply Queensway Substation in the event of a single 33kV circuit outage.

5.19 The 33 kV oil circuit breakers at Lugogo and Kampala NorthStations are obsolete. The manufacturer, Reyrolle, advised URB severalyears ago that spare parts no longer would be available for thesebreakers.

5.20 Outage statistics for the Kampala area's 33 kV system wereanalyzed by the mission covering the periods April 1986 to July 1986 andSeptember/October 1982. The following tabulation provides a comparativesummary of the average load loss per month for 1982 and 1986. As shownin the table, there has been a substantial increase in average load lossper month in all categories. The increase is attributed mainly to thereduction in UEB's maintenance activities. Tree trimming, insulatorcleaning, and pole replacements are not *.ncluded as part of a preventivemaintenance program.

7/ Aluminium conductor, steel reinforced (ASCR).

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Table 5.2: AVERAGE LOAD LOSS PER MONTH BY TYPE OF OUTAGE (1982-86)KAMPALA 33kV SYSTEM

Average Load Loss Percent of TotalOutage Type Per Month (MWh) Load Loss

1982 1986 1982 1986

Transient Faults 7.5 33.1 75% 67%- Tree Contact- Insulator Flashover- Lightning

Broken Conductors 1.0 6.3 10% 13%- Conductor Burndown

Connector Fallure 0.5 2.0 5% 4%- Jumper Burndown

Miscellaneous 1.0 8.3 10% 16%- Cause not defined- Broken poles- Etc.

11 kV Substations and Primary Distribution System

5.21 The Kampala area 11 kV substations, consisting of KampalaNorth, Queensway and Lugogo, have sufficient capacity to meet currentpeak demands under normal operating conditions. In the event of a singletransformer outage at Kampala North and Queensway, there is sufficientfirm supply to meet peak loads. At the Lugogo station, however,Transformer No. 3 failed due to an internal fault and can no longer beoperated.:. The remaining 10/14 MVA Transformer No. 2 is carrying theentire station load of 11.6 MVA. As UEB has no spare 33/11 kV trans-formers available, a loss of the remaining Lugogo transformer wouldresult in a long-term outage in this station's service area. Underpresent system conditions, only 5 MVA of the Lugogo load could betransferred to adjacent substations through feeder ties.

5.22 The mission visited the three 11 kV substations within theKampala area to assess their general operating conditions and observedinadequacies in preventive maintenance and repair work. In particular,the following deficiencies were noted:

(a) transformer cooling systems and controls not functioningproperly;

(b) silica gel in transformer vents, indicating high moisturecontent and needing replacement;

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(c) insulators covered by dust;

(d) outdoor equipment ground connections missing or faulty;

(e) 11 KV feeder-breaker instrumentation not working at KampalaNorth Station;

(f) doors of outdoor enclosures housing control equipment left openat Kampala North Station; and

(g) need to replace oil in power circuit breakers.

5.23 During the mission's visit, peak load readings were taken byUEB on all 11 kV substation feeders. The following feeders were found tohave loads which have reached or exceeded the conductor thermal capacity.

LoadFeeder (Percent of Capacity)

Kampala North K1572 108%Kampala North K1570 92%

Lugogo K1274 96%

Queensway K1440 104%Queensway K151S 196%

5.24 A number of oil switches at the Kitante 11 kV switching pointhave been out of service for some time. UEB has experienced difficultyin maintaining this switchgear due to its age and unavailability of spareparts. This switching point is a key element in the 11 kV distributionscheme for the downtown Kampala area and provides feeder ties withQueensway, Lugogo and Kampala North Stations. Its present unreliableservice greatly reduces UEB's operating and switching capabilities.

5.25 The 11 kV primary cable on UEB'L system is the paperinsulated lead covered (PILC) type. Terminations are the liquid compoundtype. Both the cables and terminations have been in service for 20 to 30years and can be considered to have reached the end of their useful life.A number of cables have failed due to insulation breakdown and deterior-ation. Cables have also been damaged by dig-ins during the road andwater service construction activities presently underway in Kampala. UEBhas had difficulty in locating and repairing cable faults because theircable fault location equipment is inoperative.

5.26 The mission reviewed outage statistics, covering the periodsApril 1986 to July 1986 and September/October 1982, for the Kampalaarea's 11 kV primary feeders. The following tabulation provides acomparative summary of the average load loss per month for 1982 and 1986.

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Table 5.3: AVERAGE LOAD LOSS PER MONTH BY TYPE OF OUTAGE (1982-86)KAMPALA 11kV FEEDERS

Average Load Loss Percent of TotalOutage Type Per Month (MWh) Load Loss

1982 1986 1982 1986

Transient Faults 15.0 72.8 50 37- Tree Oontact- Insulator Flashover- Lightning

Broken Conductor 8.0 40.3 27 20- Conductor Burndown

Faulty Distribution 2.5 39.4 8 20Transformers

Underground Cable Faults 1.0 10.4 3 5

Connector Failure 2.5 20.9 9 10

Miscellaneous- Cause Not Identified 1.0 15.2 3 8- Broken Poles- Etc.

5.27 The number of transient faults has increased substantially,reflecting UEB's reduced activity in tree trimming along line right-of-ways and preventive maintenance such as insulator cleaning. The durationof outages caused by transient faults has also increased on some 11 kVfeeders. The reclosing relays or reclosing mechanisms on the breakers ofthese lines are no longer functioning and transient faults cannot becleared automatically through breaker reclose operations. A transientfault trips the feeder breaker and it stays open until UEB operatingpersonnel travel to the substation and reclose the breaker manually.

5.28 The increase in outages caused by conductor breakage orburndown reflects the loading conditions on the 11 kV feeders. Underemergency operating conditions, UEB has loaded some circuits to levelsbeyond the thermal rating of the overhead conductors. The transfer ofloads to other circuits through ties has not been possible due toinoperative switchgear.

5.29 Outages on the 11 kV feeders caused by distribution transformerfailures have also increased sharply and this type of load loss has takena larger proportion of the total load lost due to system faults. UEBpresently has a large number of distribution transformers connected

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directly to the 11 kV lines without primary fuse protection. Supplies offuse holders and fuse refill units have diminished. Failures oftransformers directly connected in this manner have caused the 11 kVfeeder breaker at the substation to trip out, resulting in the loss ofthe entire feeder load.

5.30 Outages caused by the failure of overhead line connectors haveincreased as well. This increase can be attributed mainly to UEB's useof bolted type connectors instead of the compression type. The lack ofproper connectors for connecting aluminum and copper conductors haveresulted in UEB's use of unsuitable connectors for this type ofapplication. This has resulted in galvanic action, and connector over-heating and failure.

5.31 There are serious voltage problems and high losses on many11 kV feeders in the Kampala area. During the mission's visit, USBselected four typical problem feeders for detailed study by the missionto determine voltage profiles and losses. Computer calculations werecompleted using peak load conditions. The maximum feeder voltage dropsthrough the entire feeder lengths were between 10 and 11 and totalfeeder losses were calculated at 42 to 62 of feeder kW loading. Peakloads on these feeders were approaching the maximum thermal limits of theconductor. The selected feeders have several overhead line segmentsusing all steel conductors which contribute greatly to the high voltagedrop and losses experienced. As a general rule, primary distributionfeeders economically designed and operated to reduce losses would showmaximum voltage drops of 32 to 4%.

Distribution Transformers and Low Voltage System

5.32 Many areas of Kampala are presently experiencing frequent poeweroutages on the low-voltage system because distribution transformers havefailed and replacement transformers are no longer available from URB'sstock. Some of these areas have been without power for three to fourmonths. A total of 71 units representing 7,000 kVA of transformercapacity are now permanently out of service. The Kampala District systemnormally has a total installed distribution transformer capacity of94,900 kVA. UEB has attributed these transformer failures to severalcauses, mainly a lack of maintenance and lack of proper primary forsecondary fusing, and these are summarized and ranked in Table 5.4.

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Table 5.4: CAUSES OF DISTRIBUTION TRANSFORMER FAILURESKAMPALA

Cause of Transformer Fallure S of Total Failed Transformers

Lack of proper primary or 50secondary fusing

Lack of maintenance, i.e.: 30low olI levels, crackedbushings

Lightning arrester failure 5

Internal insulation failure 5due to age

Damage due to sabotage, war 5

Premature failure due to Smanufacturing defect

Source: UEB.

5.33 UEB stated that its response time to low-voltage system outageshas in some occasions been very slow due to the large number ofcoincidental outages occurring. Time lags of two to three days haveoccurred from the time of a transformer outage to the time of powerrestoration. On many occasions of lengthy outages, customers have takenthe initiative to restore power by rewiring blown fuses with links ofsolid wire. In some cases where the transformer fuses blew because ofoverload conditions, this fuse re-wiring practice has resulted insubsequent burnout of the transformer.

5.34 UEB's secondary distribution system in the Kampala areaconsists of long runs of low-voltage conductors supplied from largethree-phase transformers with ratings of 100 to 500 KVA. This type ofsystem has inherently high losses and under high loading conditionscustomer service voltages are reduced to unacceptable levels. Large loadinbalances between phases on the low-voltage system are a commonoccurrence. This condition is also contributing to high losses.

5.35 UEB maintains records of low-voltage system outages by catego-rizing the fault and estimating the outage duration. No statistics areavailable indicating load loss in kWh. Typical records of outages in theKampala area covering a period of nine days were reviewed by themission. The results of this analysis are summarized in the followingtable.

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Table 5.5: ANALYSIS OF LOW-VOLTAGE SYSTEM OUTAGESKAMPALA

Accumulated OutageOutage Type Duration (Hours) a/

Blown transformer 296LV fuse-cause unknown

Conductor-to-conductor 80contact

Transformer overload 285

Conductor burndown 215

LV Cable Fault 294

Connector Failure 36

Total of all Outage Categories 1,206

a/ Accumulated outage duration Is total for 9-day period studied.

Assistance from the British Overseas Development Agency (ODA)

5.36 Improved housekeeping measures combined with new equipment tobe procured through a grant from British ODA should put UEB in a positionto further improve service and restore power to areas affected byfrequent outages. Distribution transformers and fuses are the materialsmost urgently needed to alleviate the current problems in the Kampaladistrict. Distribution transformers totalling 26,300 kVA in capacitywill be purchased under the ODA grant. This should be more than adequateto replace the 7,000 kVA of transformer capacity presently out ofservice. The balance of the shipment will be used to meet short-termtransformer requirements for maintenance and normal load growth. A listof equipment and material to be supplied under the ODA emergency grant isprovided in Annex 2. To assist UEB in the installation of the emergencyequipment, ODA has agreed to provide two line construction trucks and theservices of two lineman-trainers.

Additional Equipment Proposed by Kennedy and Donkin

5.37 Kennedy and Donkin, consultants to UEB, have prepared a reporton Rehabilitation and Uprating of the Uganda Electricity System. Inaddition to the rehabilitation of the Kampala distribution system throughutilization of the ODA supplied materials, the consultants have indicateda need for additional equipment to meet UEB's immediate equipment needsand improve reliability of supply. This equipment includes the followings

- 36 -

(a) Addition of a 10/14 MVA 33-11 kV transformer at LugogoSubstation to replace the defective unit.

(b) Replacement of 14 obsolete 33 kV outdoor circuit breakers atthe Lugogo and Kampala North Substations.

(c) A new 66-11 kV substation at the Port Bell (southeast ofKampala) to be supplied by a spur from the Owen Falls-Lugogo66 kV line. The project would include a 5 MVA transformEr,protective equipment, and extension of the 11 kV distributionsystem.

(d) Replacement of obsolete 11 kV switchgear at the Kitanteswitching point in Kampala.

(e) Reinforcement of Kampala's 33 kV sub-transmision ringincluding:

gi) Reconductoring the existinj 33 kV lines from Kampala Northto Lugogo.

sii) Construction of a second 33 kV line from Kampala North toKampala South.

(iii) Construction of a second 33 kV line from Lugogo to KampalaSouth.

(iv) Protective relaying for above new lines listed above.

(f) construction of a 3 km or longer 11 kV overhead line to servethe Ndeeba load area from Queensway Station. This line isrequired to provide a more direct supply to the area, nowserved at 400 V.

(g) Replacement of 35 km of aged and defective PILC (paperinsulated, lead covered) 11 kV cable and associated cableterminations.

th) Replacement of forty obsolete and faulty 11 kV Ring Main Units.

Ci) Replacement of 50 km of aged LV armoured cable.

(j) Replacement of defective and damaged LV feeder pillars.

Recommendations

5.38 In order to increase the reliability and efficiency of theexisting transmission/distribution system and identify a future develop-ment program, UEB should: (i) implement improved operating proceduresand preventive maintenance practices as outlined in Table 5.6 page 38 and(ii) undertake a system planning study for the Kampala area. The Kampala

- 37 -

Area system planning study should give particular attention to thefollowing considerations:

(a) Peak loads of many 11 kV feeders approaching or exceedingthermal capacity.

(b) Low voltages and high losses experienced on many 11 kV feadersand lv distribution lines.

(c) Illegal connections and consumers obtaining free electricservice due to meter reading or billing deficiencies,contributing factors to UEB's high load growth.

(d) Distribution system design standards requiring evaluation basedon cost effectiveness and present standards for distributiontransformer and LV system installations require updating.

(e) Establishment of a new 132-33 kV supply at or near the KampalaSouth station as an alternative to reinforcing the existing 33kV supply lines from Kampala North to Kampala South stations.

(f) Existing 33 kV lines supplying Queensway Substation fromKampala South requiring uprating to provide firm supplycapacity.

5.39 During the mission's visit, UEB engineering staff agreed to theneed for a detailed distribution system planning study for the Kampaladistrict to consider all the alternatives for rehabilitation andestablish a clear direction for future system development. ConsequentlyUEB proposed that the 33 kV Ring reinforcement project be deferred andthat the extent of underground cable replacement be reduced until aplanning study is completed. The mission concurs with these views andrecommends deferring the installation of the new Port Bell station aswell, particularly in light of the need to confirm the feasibility ofuprating the existing 66 kV Owen Falls-Lugogo transmission line to 132 kVoperation, as discussed in para. 5.41.

- 38 -

Table S.6: RE iENDATIONS FOR IWPROVED DISTRIBUTION SYSTEM RELIABILITY

Monitorinag and Operating Procedures

1. UEB's engineers should continue to investigate the various alternatives discussedto transfer 33 kV lInes at the Kampala South Station bus In order to allow the33 kV ring to be normally operated with the bus tie breaker open at KampalaSouth.

2. The substation transformer cooling systems should be checked for properoperation. Where the controls for the fans, (and oil pumps, where Installed),are Inoperative, these controls should be Jumpered to keep the cooling devices Incontinuous operation until spare parts are available for proper repair of thesystem.

3. All maximum Indications on oil and winding temperatures of substationtransformers should be reset, and regularly checked and recorded, at least oncewokly.

4. All protective relays should be checked for proper operation. These shouldInclude, In particular, reclosing relays and transformer temperature relays.

5. Investigate ways of reducing the demand on feeders which are loaded close totheir capacity:

Nos. K1570 and K1572 out of the Kampala North substation,No. K1274 out of the Lugogo substation, andNos. K1440 and K1515 out of the Queensway substation.

6. Connect switch operating handles in substations directly to the ground grid forthe safety of operators.

7. Inspect lines after transient faults to attempt to determine the cause of thefault.

8. Use proper connectors at Junctions of aluminum and copper conductors.

9. Institute a program to regularly check the peak loadings on distribution trans-formers. This program may help to minimize further transformer burnouts beforethe arrival of replacement units and would be a useful Indication of which trans-formers can be Interchanged to relieve overloading at any specific locations.

10. List distributlon transformers which are not now fused on the primary and/orsecondary terminals so that Installation of these fuses can be expedited oncereplacements are available. Urgent priority Is to be given to Installation ofprimary fuses where such are not now in place.

11. Check the load distrlbution between the phases of low-voltage lines and, whererequired, transfer service to achieve acceptably balanced phase currents.

12. Improve response to low-voltage system outages In order to reduce the Incidenceof customers' re-energizing transformers to restore power.

- 39 -

Table 5.6: (Continued)

Maintenance Procedures

1. Clean insulators In substations.

2. Replace the silica-gel In the breathers of most substation transformers.

3. Replace the oil In oil-type circuit breakers, which have been operatingfrequently and check the main contacts In these breakers for evidence of burning.

4. Close doors on all outdoor electrical cabinets and weatherproof them,

5. Inspect ground connections on all outdoor substation equipment and repair If

faulty.

6. Repair or replace the underground cable fault locator.

7. Replace ammeters for the Entebbe Line No. 1 and the Mltyana line, (at KampalaSouth substation).

5.40 UBB also has proposed a reduction in the Lugogo and KampalaNorth 33 kV breaker replacement program. It was agreed to replace onlyfour units at these stations and to utilize the salvaged breakers as asource of spare parts for the remaining Reytolle breakers. It isrecommended that the proposal to replace the defective 33-11 kV 10/14 MVAtransformer at Lugogo with a unit of identical rating be given furtherconsideration. The transformation capacity at this station should beuprated at this time to meet future loads beyond its present two-bankcapacity of 28 MVA. It may therefore be more appropriate to salvage theremaining 10/14 MVA transformer, allocate it as a system spare andpurchase two new 33-11 kV transformers with a capacity of 20 to 25 MVAeach.

5.41 It is recommended that the feasibility of increasing theoperating voltage of the Owen Falls/Lugogo transmission line from 66 to132 kV be re-examined. After preliminary investigations Kennedy andDonkin advised against upgrading this line because of conductor clearancelimitations. However, given the potential of this line to increase thefirm supply to the Kampala area if operated at a higher voltage, a moredetailed study ought to be undertaken before a final decision is made.

5.42 The proposed improvements listed in Table 5.7, page 40 shouldbe implemented to satisfy the short-term requirements of the Kampalasystem rehabilitation, until such time as a planning study is completedto define long-term system development. It is suggested that thisrehabilitation work be funded through the existing IDA Power II Credit.

- 40 -

Table 5.7. PROPOSED SHORT-TERM IMPROVEMENTSTO THE TRANSMISSIONi/DISTRIBUTION SYSTEM

Estimated CostItem Foreign Local Total

----- -(USS '000's )-- ---

Two (2) 25 MVA, 33-11 kV 350.0 60.0 410.0transformers for LugogoSubstation (KVA to beconfirmed by UEB)

Four (4) 33 kV outdoor 70.0 8.0 78.0power circuit breakers(Kampala North andLugago replacements)

One (1) 11 kV Switchgear 33.0 3.6 36.6assembly (Kitanto switch-gear replacement)

3 km O/H 11kV line Queeonsway 3.9 20.3 24.2to Ndeeba

7.5 km 11 kV Power cable 120,0 21.9 141.9(replacement for faultedcable)

Ten (10) Ring main units 45.0 4.9 49.9

Thirty (30) Power Cable 4.5 1.0 5.5terminations

15 km low voltage cable 267.3 48.8 316.1(replacement for faultedcable)

110 units Street Feeder 400.5 43.6 444.1pillars - variousconfigurations

TOTALS 1294.2 212.1 1506.3

- 41 -

5.43 Pinally, it is .proposed that specialists be engaged toundertake the planning study and be required to provide training to UEB'sengineering staff in the application of computerized planning techniques.The cost of this study is estimated at US$246,000 and its Terms ofReference are attached as Annex 3.

Annex 1- 42 - Page l of 3

TERMS OP RREFERCE

FORt

ASSISTANCE TO THE OM OF UGANDA IN DEVELOPING A

MAMUa GENT IMPRVXNT3 PROGAM FOR THE UGANDA ELECTRICITY BOARD

Summary of Requirements

The Government of Uganda is soliciting proposals for thedevelopment of a program for improving the management of the UgandaElectricity Board (UEB). The objective of this improvement program is toenhance the management capability of UEB, through more efficientoperating procedures, equipment, and training to provide high-qualityservice at least cost. It is expected that the program, once developed,will be implemented with the assistance of selected expatriatespecialists, filling line positions in UEB for a period of three to fiveyears, who will train staff selected by UEB, in consultation with thespecialists, to assume their positions once the term of the managementcontract is completed.

Background

WEB is a statutory government corporation responsible for thegeneration, transmission, and distribution of electricity in Uganda.During the recent past, its finances and service reliability havedeteriorated to the point where, if action is not taken, the utility willno longer be able to operate. To arrest this trend, a joint UNDP/WorldBank loss reduction mission has recommended the restructuring of theutility.

Scope of Work

The assistance to UEB in developing a management improvementprogram would consist of the services of three specialists: a managementspecialist, an engineer, and a financial analyst. Their scope of workwould include, but not necessarily be limited to, the following tasks:

(a) Discussions with the Government of Uganda and agreement onacceptable terms and conditions for the service of expatriatepersonnel with UEB, including the scope of services, durationof the assistance, composition of the management team, lineauthority, compensation. Preparation of Terms of Reference forthe provision of these services.

Annex 1- 43 - Page 2 of 3

(b) Development of standards to be used in evaluating proposals forprovision of the services, and those by which the performanceof any contracted organization or personnel may be assessed.

(c) Preparation of a listing of organizations qualified to offerthe services required. Selection of organizations will bebased primarily on their having successfully provided similiarservices to one or more developing countries in the past.

(d) Preparation and issuances of letters of invitation to theselected organizations for submission of proposals to providethe services.

(e) Assistance to the Government of Uganda in the evraluation ofproposals received, negotiations with the more highly evaluatedcontenders and selection of the most suitable organization.

Estimated Costs

The cost of the activities outlined above is estimated to beUS$75,000 as shown in Table 1.

Table 1: ESTIMATE OF OOSTS

USS

Travel a/ 21,000Subsistence bl 6,000Consultants' services c/ 25,000ESMAP staff d/ 16,000Contingencies e/ 7,0Q0

Total 75,000

a/ Based on 6 U.S.-Uganda round trips at $3,5Q0 each.b/ Based on 50 man-days at $120 per unit.c EBased on 10 man-weeks at 52,500 per unit.d/ Based on 16 man-weeks at 51,000 per unit.e/ Calculated at approximately 10% of preceding subtotal.

Division of Labor and Responsibilities

The Consultants will be fully responsible for managing theidentification, negotiation, and finalization of a contract between theGovernment of Uganda and a competent organization to provide the servicesrequired. The Government of Uganda will provide: (a) access todocuments and data; (b) counterpart staff as required; (c) office space;and (d) secretarial services.

- 44 -Annex Page 3 of 3

Guidelines for the Proposal

The proposal of the Consultants should provide comprehensivedetails of the following:

(a) a work plan in accordance with these Terms of Reference;

(b) the nature of the organization and previous experience inrelated work in other countries;

(c) curricula vitae of staff to be assigned for the work; and

(d) a preliminary estimation of hours per person required for thework.

Structure and Schedule of Payments

The structure and schedule of payment for services renderedduring the contract period will be negotiated with the Government ofUganda. These payments will be based on a fixed fees plus bonuses tiedto performance targets.

Annex 2- 45 - Page 1 of 2

ODA EMERGENCY MATERIALS

The equipment and materials listed below were to be supplied toUEB through a grant from ODA. Shipments were scheduled for the periodsindicated and the total cost of all the materials excluding shipping andfreight is estimated to be US$1,600,000.

Quantity Description Shipment Schedule

10 500 kVA, llkV-433V, 3-phase 09/29/86 todistribution transformer 12/05/86

20 315 kVA, llkV-433V, 3-phase "distribution transformers "

30 200 kVA# llkV-433V, 3-phase "distribution transformers

50 100 kVA, llkV-433V, 3-phase s n

distribution transformers "

50 50 kVAp llkV-433V, 3-phasedistribution transformers "

60 25 kVA, llkV-250V, 10 " "distribution transformers "

3,000 Low voltage fuses various ratings 10/30/86

180 33 kV fuses and various 08/22/86 toquantities of fuse parts 08/29/86

360 llkV fuses and various 08/22/86 toquantities of fuse parts 08/29/86

300 10kV surge arresters 09/24/86

60 30kV surge arrester 09/24/86

10,740 Low voltage house service fuses, 10/03/86 tovarious ratings 11/28/86

20 Feeder pillars including spares 09/15/86

30 KM 4.125 in2 ACSR conductor 09/19/86

20 KM 0.05 in2 ACSR conductor 09/19/86

50 KM 0.023 in2 ACSR conductor 09/19/86

50 KM 16mm2, 600/1000V single core, PVC cable 11/10/86

Annex 2- 46 - Page 2 of 2

u!antity Description Shipment Schedule

10KM 35mm2, 600/1000V 4 core, PVC cable 10/27/86

5KM 95mm2, 600/1000V 10/27/864 core, PVC cable

2KM 240mm2, 600/1000V 10/27/864 core, PVC cable

Miscellaneous LV 08/26/86 tocable terminations 09/12/86and connectors

5000 kWh meters, 1-phase, 08/29/86 to240V 10/10/86

200 kWh meters, 3-phase, 08/29/86 to433V 10/10/86

20 kVAh meters, 3-phase, 3W 08/29/86 toCT Type 10/10/86

150 kWh meters, 3-pha3e 4W 08/29/86 to10/10/86

150 kVAh meters, 3-phase 4W 08/29/86 toCT type 10/10/86

20 Radio equipment 09/19/86 tomobile transceivers 10/10/86

10 Radio equipment 09/19/86 tofixed station transceivers 10/10/86

Various spare parts 10/10/86for radio equipment

21 sets Tripping batteries and 09/18/86 tochargers 10/02/86

Various tools, electrical 08/18/86 toinstruments and maintenance supplies 09/26/86

Various distribution and 09/26/86substation spare parts

1,375,000 Pre-printed statementsfor customer billing

300,000 Pre-printed cash receipts

Annex 3-47- 'aa1of 5

TEM OF REFENCE

SYSTEM PLAINIC STUID

Summary of Requirements

The Uganda Electricity Board (UEB) is solic£ting proposals fromconsultini firms to conduct a comprehensive system planning study for theKampala transmission and distribution system including the provision ofprocurement services for computer hardware and system planningsoftware. In addition, the consultant shall study the existing primaryand secondary distribution system standards, where appropriate and,prepare new standards based on least cost, (including losses), as thecriterion.

This study will be financed by andthe executing agency is _ In the following textthe consulting firm submitting a proposal to do the work is referred toas the "Firm" and the work is referred to as the "study."

Background

UEB was established in 1948 by the Uganda Electricity Ordinanceto acquire and operate existing electricity undertakings and to generate,transmit, distribute and supply electricity in Uganda. Under theElectricity Act of 1964, which is presently in force, UEB's functions andduties to generate, transmit, distribute and export electricity werefurther defined and the Board was given adequate autonomy to conduct itsbusiness and serve the country of Uganda.

A "Second Power Project" is presently underway in Ugandafinanced jointly by the International Development Association (IDA), theCommonwealth Development Corporation (CDC), the Overseas DevelopmentAdministration (ODA) and UEB. The project consists of the rehabilitationof the Owen Falls Power Station, the rehabilitation of the Transmissionand Distribution System, the implementation of various studies inconjunction with this work and the provision of vehicles, tools,equipment and training facilities needed to operate and maintain thepower system.

The need for a planning study for the Kampala area has beenidentified in order to effectively implement the rehabilitation of thetransmission and distribution system. A World Bank mission has prepareda Power System Efficiency Study and its report is part of these Terms ofReference.

Annex 3

- 48 - Page 2 of 5

Scope of Work

System Planning

The UEB system serving the Kampala area shall be studied. Inparticular load forecasts, system improvements and future developmentprograms shall be defined by the firm for the following components of thesystem:

(a) 132kV transmission to sub-transmission transformer stations.

(b) The sub-transmission system. (The existing system is operatedat 33 kV).

(c) The substations reducing sub-transmission voltages to primarydistribution levels. (The existing primary distributionvoltage used is 11 kY).

(d) All primary distribution feeders serving the Kampala load areaincluding downtown area and surrounding residential, industrialand rural areas. (The existing primary distribution systemserving this area consists of 11 kV feeders from Kampala North,Queensway and Logogo Stations.)

(e) The secondary distribution system including distributiontransformers and low voltage network.

The work to be performed by the firm includes but is notnecessarily limited to the following main tasks:

(a) Review existing information and drawings available for theKampala power system and advise UEB of revisions and updatingrequired to facilitate study work.

(b) Investigate commercially available computer systems includinghardware and software suitable for UEB use in load forecasting,load flow analysis, feeder analysis, short circuit studies andtransformer load management. Recommend system purchase to UEBand provide procurement services for purchase and delivery ofsystem on behalf of UEB.

(c) Assist UEB in the installation of computer system hardware andprovide training in operation and application of software andcomputer aided planning techniques.

(d) Develop a ten-year load forecast for the sub-transmission andprimary distribution system including transformer and switchingstations.

Annex 349 Page 3 of 5

(e) Evaluate alternative system development scenarios.

(f) Assess technical losses at the sub-transmission, primarydistribution and secondary distribution levels, supply economicoptimization techniques and make recommendations for a systemloss reduction program.

(g) Determine a least cost system rehabilitation and expansion planin detail for a five-year investment program and conceptuallyfor a 10-year horizon period. This plan shall be complete withbudgetary estimates suitable for presentation to the financingagencies.

Distribution Standards

The Firm shall -eview UEB's existing design and constructionstandards as follows:

(a) Overhead pole lines rated 66 kV, 33 kV, 11 kV and 400 V.

(b) Underground distribution systems rated 11 kV and 400 V.

(c) Overhead and underground distribution transformerinstallations.

(d) Primary (11 kV) and secondary (400 V) distribution systemprotection standards.

The Firm shall investigate alternative designs and standards,prepare cost-benefit analyses and make recommendations to UEB onimprovements. Special emphasis should be placed on the feasibility ofintroducing a multi-grounded primary distribution system and the use ofsingle-phase distribution transformers. Economical conductor sizing anddistribution transformer selection to reduce losses shall also be ofprime concern in this study.

Upon UEB's review and approval of the recommendations, the Firmshall prepare a comprehensive set of distribution standards covering allnew designs and construction drawings.

Divisions of Labor and Responsibilities

The Firm will be fully responsible for the implementation ofthe studies. It will provide all the services required to ensure atimely completion of the project.

UEB will be responsible for providing assistance to theconsulting firm as follows:

Annex 3Page 4 of 5-50 -

(a) Drawings, documents and data updated with current informationwill be made available to the firm as required to implement thework.

(b) Access to plants and facilities in the field as required.

(c) Suitable transportation for the Firm's staff when engaged inwork in Uganda.

(d) Suitable office space and secretarial services.

(e) Counterpart staff as required and at the responsibility andeducational level specified by the consulting firm in order toensure the success of the project in terms of technologytransfer.

Guidelines for Proposal

The Firm's proposal shall provide comprehensive details of thefollowing:

(a) A work plan in accordance with these Terms of Reference.

(b) A description of the methodology to be followed including theapproaches to be used in training UEB staff in computer aidedsystem planning.

(c) A preliminary estimate of the hours per person required for thework and the places when the work will implemented.

(d) The nature of the organization and previous experience inrelated work in developing countries.

(e) Curriculum vitae of staff who will be assigned for the study aswell as curriculum vitae of support staff at Headquarters.

(f) Complete details of any software package offered. This shouldinclude a description of each program, form of input data,sample of output and details of where such program have beenused to date.

A sealed envelope should be enclosed with a proposal whichgives a detailed cost estimate for this work. The Firm may suggestalternative schemes for attaining the objectives outlined in the Summaryof Requirements. Any alternative scheme should be clearly identified assuch, and separate work schedules and costs should be provided for each.

Once the proposals have been evaluated, UEB will proceed tonegotiate the contract with the company submitting the most highly

Annex 3

- 51 - Page 5 of 5

evaluated proposal and, if they are unable to reach agreement, proceed tonegotiate with the next highly qualified firm. UEB may reject any or allof the proposals received if none of them is satisfactory.

Form of Contract

The contract which will be awarded to the successful firm willbe based on the International Model Form of Agreement Between Client andConsulting Engineer No. IGRA 1979 P.I. -- produced and issued by theInternational, Federation of Consulting Engineers (FIDIC).

Schedule of Payments

The schedule of payments will be negotiated and the bidder isinvited to propose a schedule. However, UEB will tie payments to clearperformance targets, some of which may be:

(a) A report providing recommendations for the computer system andsoftware to be purchased by UEB.

(b) Completion of the detailed system rehabilitation and expansionplan.

(c) Completion of a report recommending cost effective improvementsto UEB's distribution designs and standards.

(d) Completion of the detailed set of new distribution standards.

Estimate of Cost (1986 US$) 1/

Professional Travel andServices Subsistence Total

Ccnsulting Services (420 man-days) $168,000Travel $25,000Subsistence 30,000Physical Contingency (1OZ) 17,000 6,000

Project Total $185,000 $61,000 US$246,000

1/ Costs based on Professional Services at an average rate ofUS$400/day. Return air travel at $3,000/trip. Subsistence costs(hotel and meals) at US$150/day.

- 52 -

ENERGY SECTOR MAACENgT ASSISTANCE PROGRMh

Activities Completed

Country Project Date Number

Energy Efficiency and Strategy

Africa Regional Participants' Reports - Regional Power Seminaron Reducing Electric System Losses in Africa 8/88 087/88

Bangladesh Power System Efficiency Study 2/85 031/85Botswana Pump Electrification Prefeasibility Study 1/86 047/86

Review of Electricity Service Connection Policy 7/87 071/87Tuli Block Farms ElectrificationPrefeasibility Study 7/87 072/87

Burkina Technical Assistance Program 3/86 052/86Burundi Presentation of Energy Projects for the

Fourth Five-Year Plan (1983-1987) 5/85 036/85Review of Petroleum Import and DistributionArrangements 1/84 012/84

Costa Rica Recommended Technical Assistance Projects 11/84 027/84Ethiopia Power System Efficiency Study 10/85 045/85The Gambia Petroleum Supply Management Assistance 4/85 035/85Ghana Energy Rationalization in the Industrial

Sector of Ghana 6/88 084/88Guinea- Recommended Technical AssistanceBissau Projects in the Electric Power Sector 4/85 033/85

Indonesia Energy Efficiency Improvement in the Brick,Tile and Lime Industries on Java 4/87 067/87

Power Generation Efficiency Study 2/86 050/86Jamaica Petroleum Procurement, Refining, and

Distribution 11/86 061/86Kenya Power System Efficiency Report 3/84 014/84Liberia Power System Efficiency Study 12/87 081/87

Recommended Technical Assistance Projects 6/85 038/85Madagascar Power System Efficiency Study 12/87 075/87Malaysia Sabah Power System Efficiency Study 3/87 068/87Mauritius Power System Efficiency Study 5/87 070/87Panama Power System Loss Reduction Study 6/83 004/83Papua New Energy Sector Institutional Review: ProposalsGuinea for Strengthening the Department of

Minerals and Energy 10/84 023/84Power Tariff Study 10/84 024/84

Senegal Assistance Given for Preparation of Documentsfor Energy Sector Donors' Meeting 4/86 056/86

Seychelles Electric Power System Efficiency Study 8/84 021/84Sri Lanka Power System Loss Reduction Study 7/83 007/83Syria Electric Power Efficiency Study 9/88 089/88Sudan Power System Efficiency Study 6/84 018/84

Management Assistance to the Ministry ofEnergy and Mining 5/83 003/83

- 53 -

ENERGY SECTOR MANAEMN T ASSISTANCE PROGRAM

Activities Completed

Country Project Date Number

Energy Efficiency and Strategy (Continued)Togo Power System Efficiency Study 12/87 078/87Uganda Energy Efficiency in Tobacco Curing Industry 2/86 049/86

Institutional Strengthening in the Energy Sector 1/85 029/85Zambia Energy Sector Institutional Review 11/86 060/86Zimbabwe Power Sector Management Assistance Project:

Background, Objectives, and Work Plan 4/85 034/85Power System Loss Reduction Study 6/83 005/83

Household, Rural, and Renewable Energyurundir Peat Utilization Project 11/85 046/85

Improved Charcoal Cookstove Strategy 9/85 042/85M8te Improved Biomass Utilization--Pilot Projectsdlvoire Using Agro-Industrial Residues 4/87 069/87Ethiopia Agricultural Residue Briquetting: Pilot Project 12/86 062/86

3agasse Study . * 12/86 063/86The Gambia Solar Water Heating Retrofit Project 2/85 030/85

Solar Photovoltaic Applications 3/85 032/85Global Proceedings of the ESMAP Eastern & Southern Africa

Household Energy Planning Seminar 6/88 085/88India Opportunities for Commercialization of

Non-Conventional Energy Systems 11/88 091/88Jamaica FIDCO Sawmill Residues Utilization Study 9/88 088/88

Charcoal Production Project 9/88 090/88Kenya Solar Water Heating Study 2/87 066/87

Urban Woodfuel Development 10/87 076/87Malawi Technical Assistance to Improve the Efficiency

of Puelwood Use in the Tobacco Industry 11/83 009/83Mauritius Bagasse Power Potential 10/87 077/87Niger Household Energy Conservation and Substitution 12/87 082/87

Improved Stoves Project 12/87 080/87Peru Proposal for a Stove Dissemination Program

in the Sierra 2/87 064/87Rwanda Improved Charcoal Cookstove Strategy 8/86 059/86

Improved Charcoal Production Techniques 2/87 065/87Senegal Industrial Energy Conservation Project 6/85 037/85Sri Lanka Industrial Energy Conservation: Feasibility

Studies for Selected Industries 3/86 054/86Sudan Wood Energy/Forestry Project 4/88 073/88Tanzania Woodfuel/Forestry Project 8/88 086/88Thailand Accelerated Dissemination of Improved Stoves

and Charcoal Kilns 9/87 079/87Rural Energy Issues and Options 9/85 044/85Northeast Region Village Forestry and WoodfuelPre-Investment Study 2/88 083/88

Togo Wood Recovery in the Nangbeto Lake 4/86 055/86.. _ , , , , - * . . .. .. ...... _

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